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There has to be something behind this selection process.
If I were streamlining the company, I would lay off starting with tier I (because tier 2 and tier 3 can also do the work) and then tier 2 (because tier 3 can also do the work). I think MModal will eventually end up with only tier 3 employees in the US, and they will force them to all become MMEs. JMHO.
Don't know how may part time people are tier 3, but I would imagine employees w/o benefits are cheaper than employees with benefits.
However, the earlier post about unemployment costing them less for MTs with really low paychecks also makes some sense too.